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Old 03-20-2013, 04:57 PM   Nav to Top  #11
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KFG Resources reopens production at Carthage Point

2013-03-20 13:41 MT - News Release



Mr. Robert Kadane reports

KFG RESOURCES LTD. PROVIDES OPERATIONS UPDATE

KFG Resources Ltd.'s subsidiary, KFG Petroleum Corp., of Natchez, Miss., has reopened production in the Stewart B sand in the Carthage Point field, Adams county, Mississippi. The KFG MacNeil No. 2 well encountered 12 feet of Stewart B sand at 4,390 feet. Casing was set, and the well was completed flowing 70 barrels of oil per day, 10 per cent water, flowing tubing pressure 430. KFG has an 8-per-cent working interest reverting to a 20-per-cent working interest after payout. A north offset will be drilled within the next 90 days.

At Fayette, the No. 26-2 well has been completed for six barrels of oil per day. Fayette has reached payout; consequently, KFG's working interest reverted from 100 per cent to 74.9 per cent. Additional shallow wells will be drilled later in 2013.

Louisiana

At the Clayton field, Concordia Parish, La., the No. 1 Miller has started production in the E-2 sand at a rate of 25 barrels of oil per day. KFG has a 5-per-cent working interest before payout and an 18-per-cent working interest after payout.

In addition, the company is assembling acreage in Louisiana and Mississippi for an active drilling program in the summer and fall of 2013, as well as continued development at Fayette.





Not much in terms of production, but keep in mind that were getting Brent oil pricing. So having a little increase with high profit margins is much better than higher production and lower margins.

With three active properties, if we can do at least a dozen wells, that will add some decent revenue over the year.
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Old 03-29-2013, 01:33 AM   Nav to Top  #12
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Interim Financial Statement

As of January 31st 2013

Cash on hand $830,550
Accounts Receivable $428,833
Market Securities & prepaid expenses $7,660

Reclamation Bond $20,000

Property & Equipment $1,454,376

Total Assets : $2,741,419


Debt & Liabilities $431,823



MD&A

The Company’s primary producing oil and gas reserves are located in the Dale Lease, Concordia Parish, Louisiana, Board of Education wells, Franklin Co, Mississippi and the Galtrey Wagner 1-1 and 50-10 wells in the Fayette Field, Jefferson County, Mississippi as well as the Spring Hill #1,2,5 and 7 wells and the 26-1 and 26-2 wells - all at the Fayette Field. Production is averaging 120-130 BOPD at Fayette. A new well in Concordia Parish, Louisisana, the Miller #1, has been put on production making 25 BOPD. KFG has a 5% WI in the Miller well reverting to an 18% WI at payout. A well was drilled in Adams Co., MS to 6,300’ the MacNeil #1, and was completed as a dryhole. A second well, the MacNeil #2 , was completed in early
March 2013, flowing 75 BOPD. KFG’s WI in the MacNeil is 8% before payout reverting to a 20% WI after payout.

The 3D seismic has been reprocessed and additional drilling will take place in 2013 based on the new 3D interpretations at Fayette. In addition, 9 new projects are in various stages of completion in Mississippi.
Production for the three months ended January 31, 2013 was 2.16 mcf of gas/day and 91.56 barrels of oil/day. Production for the three months ended January 31, 2012 was 3.73 mcf of gas/day and 79.53 barrels of oil/day

Revenue from the sale of oil and gas was $2,246,912 for nine months ended January 31, 2013, compared to $2,631,427 for the nine months ended January 31, 2012. The decrease in revenue is a result of a lesser price for crude oil and declining production volumes.

The Company reported net income of $315,507 for the nine months ended January 31, 2013 compared to net income of $52,094 for the nine months ended January 31, 2012, with the increase in net income a result of lower depletion, fewer drilling and dryhole costs and substantially less operating, office and salary expenses.

During the three month period ending January 31, 2013, the #1 Miller well, Concordia Parish, Louisiana, was put on production for 25 BOPD. In March 2013, the #2 MacNeil was completed flowing 75 BOPD. Both wells will add to revenues going forward but the full impact won’t be felt until payout, estimated to be during the late summer of 2013. The quarter ended January 31, 2013 evidenced a return to profitability because no dry holes were drilled.
The Company’s main sources of liquidity are internally-generated cash flow from its oil and gas operations and access to equity capital markets. Because KFG’s internally-generated cash flow is presently sufficient to fund its overall operating expenses, the Company will not require continued additional funding in order to execute on its business strategy. The Company anticipates that public capital markets will serve as the principal source of capital to finance its future oil and gas activities and/or significant property purchases. Changes in the capital markets, including a decline in the prices of natural gas and oil, could materially and adversely impact on KFG’s ability to complete further equity financings, with the result that the Company may be forced to scale back its operational activities.

KFG had cash at January 31, 2013 of $830,550. The new oil production at Fayette, currently about 120 BOPD, is providing positive cashflow and will continue to do just that. Also the Company’s new oil revenues will provide a borrowing base the Company did not have before the Fayette development. As of now, the Company plans to expand as cashflow permits. It is anticipated the Company will have sufficient internal cashflow to continue its drilling program at Fayette through calendar year 2013. The new well, the KFG 26-1 is expected to contribute additional cash flows replacing the production from wells at Spring Hill as they begin a slow decline. The 26-1 well is currently producing 10 BOPD. The Smith 26-2 well at Fayette is producing 5 BOPD and the Company has drilled two new projects, one in Louisiana and one in Mississippi. The Spring Hill #1 well has been recompleted and production jumped from 10 BOPD to 50 BOPD and has leveled out to 30 BOPD. The Company has adequate cash and cash flow to fund its program for fiscal 2013. The two new projects undertaken, one in Conordia Parish, Louisiana (Clayton Prospect) and one in Adams Co., MS (Carthage Point Prospect) have been completed – each with additional potential. At Clayton, the #1 Miller is producing 25 BOPD and if production holds up, other wells will be considered to be put back on production. At Carthage Point, the #2 MacNeil is flowing 75 BOPD and 15 Bbls water/day and a north offset has been staked and should be drilled within 90 days.

The Company is not contemplating any other transactions which have not already been disclosed. The Company continues to look at other property acquisitions and to seek joint venture partners on its properties on a regular basis.

The total number of shares outstanding as at January 31, 2012 and March 28, 2013, is 50,584,144. As of January 31, 2013 and Mach 28, 2013, there were 2,750,000 stock options outstanding. As there is no vesting schedule attached to the stock options, all options are exercisable. There were no warrants outstanding as at January 31, 2013 or March 28, 2013. Assuming all outstanding stock options be exercised, the Company would receive additional proceeds of $CDN 275,000. The expiration
date of the outstanding stock options is October 14, 2013
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Old 06-06-2013, 10:12 AM   Nav to Top  #13
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KFG Resources to start drilling MacNeil No. 3 in June

2013-06-06 07:55 MT - News Release



Mr. Robert Kadane reports

KFG RESOURCES LTD. EXPLORATION & PRODUCTION UPDATE

KFG Resources Ltd.'s subsidiary, KFG Petroleum Corp., of Natchez, Miss., has staked a location in the Carthage Point field. The MacNeil No. 3, a 660-foot north offset to the MacNeil #2, the Company's new field in the Stewart "B" Sand. The well will be drilled in late June to 6,300' as soon as Mississippi River water recedes. The Company has an 8% working interest in the well reverting to a 20% working interest at payout.In the LaGrange Field, the Company has completed an acreage block in preparation for a 6,600' test this summer to evaluate three Wilcox Sands that produce offsetting the lease. Details will be announced before the spud date. Also in the LaGrange, KFG is operating and participating for a 10% working interest in a directional hole to 6,400' offsetting a new discovery in the Wilson Sand flowing 80 BOPD, water free.

Franklin County, Mississippi

Several areas are being leased at present. It is anticipated that all of the prospects will be completed and drilled by late fall 2013.

Jefferson County, Mississippi

At Fayette, the Company plans to drill a 4,200-foot Stewart "B" test during the summer of 2013. The Company's working interest is 74.9%. If successful, there will be several offsets. Also, the reprocessed 3D survey has highlighted another Lower Tuscaloosa anomaly at 10,000'; and, the Company is considering taking on a partner to test the new interpretation.

Amite County, Mississippi

The Company is going to operate and participate in a test well to 11,300' for a 5% working interest. The prospect offsets a CO2 flood operated by Denbury Onshore, LLC. The closest well in the flood is producing over 100 BOPD and is 1,900' away. Details will be available prior to spud date.

Warren County, Mississippi

The Company anticipates operating and re-entering a prior well to 11,400' to test an excellent oil show in the Rhodessa Sand in the fall of 2013. Again, details will be available prior to spud date.
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Old 07-10-2013, 03:57 PM   Nav to Top  #14
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Symbol C : KFG
Shares Issued 50,584,144
Close 2013-07-05 C$ 0.04
Recent Sedar Documents

View Original Document






KFG Resources begins 11,300-foot test well in Amite

2013-07-10 13:43 MT - News Release



Mr. Robert Kadane reports

KFG RESOURCES LTD. OPERATIONS UPDATE

KFG Resources Ltd.'s wholly owned subsidiary, KFG Petroleum Corp. is drilling and operating an 11,300-foot Lower Tuscaloosa test well in Amite county, Mississippi, adjacent to a carbon dioxide flood operated by Denbury. The company has a 5-per-cent working interest in a 64-acre tract, and is offsetting a Denbury well that is producing 110 to 120 barrels of oil per day and has produced in excess of 100,000 barrels to date.

Adams county, Mississippi

In the LaGrange field, KFG has staked a location to drill a 6,300-foot Wilcox test well, offsetting a new well producing 80 barrels of oil per day. The company was granted an exception location to offset this new well as operator, and it has a 10-per-cent working interest in the well and 160 acres. There are two productive zones in the offset well.

Also, in the Carthage Point field, KFG has staked a north offset location to its MacNeil No. 2 well producing in the Stewart B sand. KFG has an 8-per-cent working interest in the offset well reverting to a 20-per-cent interest after payout.





Was hoping for more information on the additional wells being drilled and other locations being worked on. Plus our current production rate would be nice, but year end is 6 weeks away and we should get a better sense of what's going on at that time. Still very optimistic with the play considering were in the black and production/reserves should increase, albeit slow but steady.
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Old 07-11-2013, 12:42 PM   Nav to Top  #15
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Some additional info below, I like how the CEO built his previous O&G company, sold it and it still trades today under PNRG at $44 a share. Another advantage KFG has is the fact that they have access to a drill rig which can make for very efficient drilling and at lower costs. KFG gets access to new projects this way, hence the multiple drills at lower percentages. But that means we can always expand to new locations and always have projects on the go.


ROBERT A. KADANE

President & CEO

Mr. Kadane has over 40 years of exploration and production experience predominantly in the southern U.S. Mr. Kadane started his own company in the 1970’s, which he successfully built and sold. That company, Prime Energy, is currently listed on the NASDAQ under the symbol PNRG.



STEPHEN GUIDO

Vice-President, Operations

Mr. Guido has over 30 years of construction and field work in the oil and gas business. Mr. Guido owns a drilling rig that is available to KFG



The Company was incorporated on Apri1 7, 1994, and in May, 1994, the Company purchased all of the issued and outstanding shares of KFG Petroleum in consideration of the issuance to the then stockholders of KFG Petroleum of an aggregate of 3,333,333 common shares of the Company. The assets of KFG Petroleum at that time consisted primarily of varying interests in producing and non-producing oil and gas properties located in Catahoula and Concordia Parishes, Louisiana, and Adams and Wilkinson Counties, Mississippi.

In January, 1997, KFG Petroleum acquired all of the shares of Shamrock Drilling for cash consideration of US$550,000. Shamrock Drilling is engaged in the contract oil and gas well drilling business, generally in East-Central Louisiana and South-West Mississippi. The assets of Shamrock Drilling consist primarily of its drilling rig and related equipment and cash items, and minor interests in certain producing oil properties.

Through Shamrock Drilling, the Company is engaged in the contract drilling of exploratory oil and gas wells for the account of third parties or for its own account.

The Company's activities in the States of Mississippi and Louisiana are carried on through its offices in Natchez, Mississippi. Kansas gas operations are managed out of a Company office in Denver, Colorado.

The Company has 4 main profit centers: (i) net sales of oil and natural gas; (ii) overhead from properties KFG Petroleum operates; (iii) interests in wells KFG Petroleum promotes for itself; and (iv) revenue from Shamrock Drilling's operations.
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Old 07-22-2013, 02:44 PM   Nav to Top  #16
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Year end will be out in a month and we should hopefully get a decent update at that time.

Currently being drilled right now, as per the June & July NR's:

- Macneil No.3 8% WI 20% after Payout
- Wilcox 10% WI
- Wilson 10% WI
- Stewart 75% WI
- Rhodessa (TBA)
- Franklin Wells (TBA)
- Tuscaloosa 5% WI

Wells put online at end of Q1: The Miller, Macneil 2 and Smith



Even if KFG's WI's are low, we still get paid on the work done sine were the operators AND our reserves increase.
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Old 07-24-2013, 11:15 AM   Nav to Top  #17
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Volume coming back after a quiet spell. Lets hope it continues until year end results come out.



Market Maker

Shares

Bid Price

Ask Price

Shares

Market Maker


205,000 0.030 0.045 32,000
169,000 0.025 0.050 30,000
238,000 0.020 0.060 50,000
137,000 0.015 0.075 25,000
200,000 0.010 0.090 50,000
400,000 0.005 0.100 4,000
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Old 07-26-2013, 01:47 PM   Nav to Top  #18
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Level 2 Quote



Market Maker

Shares

Bid Price

Ask Price

Shares

Market Maker


50,000 0.040 0.060 50,000
158,000 0.035 0.075 25,000
538,000 0.030 0.090 50,000
108,000 0.025 0.100 4,000
245,000 0.020 -- -- --
137,000 0.015 -- -- --
200,000 0.010 -- -- --
477,000 0.005 -- -- --
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Old 07-28-2013, 01:44 PM   Nav to Top  #19
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We did hit a 52 week high at 7.5c briefly, but someone sold us back down. 3 weeks left before year end results and if KFG can earn 0.01c a share or more, well

then we should technically be trading at the same multiples as other juniors at these levels at least, which is 10-15 times eps. Unlike NCI, IWG, HEO, etc. which

are all technology plays, KFG grows on revenue from not only oil production, but operating the drills AND O&G reserves. Those tech plays are all contract oriented

so once their deals are complete they need to find new clients. But KFG just keeps pumping oil and has dozens of drill targets still to pursue, as well as anything new

that can come along since we got the Shamrock drill rig.



No volume for KFG since mid May, and then last week we had some decent volume.





House Positions for C:KFG from 20130721 to 20130726



House Bought $Val Ave Sold $Val Ave Net $Net
7 TD Sec 483,000 18,730 0.039 120,000 5,005 0.042 363,000 -13,725
85 Scotia 20,000 900 0.045 0 20,000 -900
95 Wolverton 297 8 0.027 0 297 -8
1 Anonymous 64,000 1,920 0.03 64,000 2,240 0.035 0 320
99 Jitney 0 7,000 280 0.04 -7,000 280
124 Questrade 25,000 750 0.03 38,000 1,775 0.047 -13,000 1,025
79 CIBC 0 30,000 1,400 0.047 -30,000 1,400
59 PI 0 56,000 3,450 0.062 -56,000 3,450
33 Canaccord 0 88,000 2,680 0.03 -88,000 2,680
2 RBC 16,000 680 0.043 205,297 6,158 0.03 -189,297 5,478
TOTAL 608,297 22,988 0.038 608,297 22,988 0.038 0
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Old 08-01-2013, 10:01 AM   Nav to Top  #20
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KFG News



2013-08-01 06:43 MT - News Release



Mr. Robert Kadane reports

KFG RESOURCES LTD. OPERATIONS UPDATE

KFG Resources Ltd.'s wholly owned subsidiary, KFG Petroleum Corp., drilled an 11,300-foot Lower Tuscaloosa well in Amite county, Mississippi, offsetting a Denbury CO2 flood in the Smithdale field. The company drilled a well in the channel margin and encountered six feet of oil sand on water. The upper part of the sand was too tight to produce so the well was abandoned. Consideration is under way to drill a west offset. KFG is operator and has a 5-per-cent working in the lease block.

Adams county, Mississippi

In the LaGrange field, KFG operated and drilled a 6,400-foot Wilcox test -- logged and cored three oil sands. Production casing has been set to 6,400 feet for a completion attempt in the Wilson sand at 6,248 feet. The well also encountered 12 feet of oil sand in the Baker sand at 6,223 feet and five feet of oil sand in the McKittrick sand at 6,156 feet. KFG owns a 10-per-cent working interest in the well and surrounding



I'm surprised we got an update on the July NR but not June. KFG is still drilling 5-6 other wells this summer so I hope they are announced in the quarterly update. Tuscaloosa was by far the riskiest well we had to drill, but at only a 5% interest we don't loose much. Whoever paid for the additional 95% will still have to pay KFG for the drilling costs since we're the operator.



- Macneil No.3 8% WI 20% after Payout
- Wilson 10% WI
- Stewart 75% WI
- Rhodessa (TBA)
- Franklin Wells (TBA)
- Lower Tuscaloosa Anomaly(TBA)
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